Infrastructure of the future: creating new focal points in the Far East

6 September 2019

Infrastructure of the future: creating new focal points in the Far East

KEY CONCLUSIONS

There is good potential to develop the MICE industry in Primorye Territory

“Our objective is now to consider all possible solutions for creating a concept for Vladivostok as a convention and exhibition capital in the Russian Pacific region. This needs to be done, and is already being done as we speak,” Konstantin Bogdanenko, Acting Vice Governor of Primorye Territory.

“It is our view that today, Vladivostok has a full foundation in place to acquire high-quality infrastructure. And of course, with its university and the work it does, the human resources potential of the MICE industry [Meetings, Incentives, Conferences, Events – ed.] will increase further,” Alexander Stuglev, Chief Executive Officer, The Roscongress Foundation.

“The potential and need to build the infrastructure for conventions and exhibitions here is enormous. We must look at the Asia-Pacific market, and Primorye Territory could become a focal point in terms of Russia’s representation in this market,” Anatoliy Bobrakov, Deputy Chief Executive Officer, Far East and Baikal Region Development Fund.

“More work is being done in the exhibitions sector. Major exhibitions are being held, and our expocentre is a leader in the field, with over 50 years’ experience in the Russian market,” Vera Yermilova, General Director, Dalexpocenter LLC.

Conventions and exhibitions bring positive social and economic effects

“In terms of the development of the Far East, this [infrastructure for conventions and exhibitions – ed.] is what can help properly drive socioeconomic development in the region, once it is in place” Anatoliy Bobrakov, Deputy Chief Executive Officer, Far East and Baikal Region Development Fund.

“Our students understand that by being here, they not only have the chance to take advantage of our leading research and educational infrastructure, not only have the chance to learn from renowned FEFU and guest professors (including from overseas), they also have the chance to work as volunteer. This provides them with an insight into international events which take place here, as well as possible work opportunities,” Victoria Panova, Vice-Rector for International Relations, Far Eastern Federal University (FEFU).

Business tourism is growing in significance throughout the world

“The global convention market is growing, and at a rapid rate. According to experts, it will be valued at up to USD 1.5 trillion, which is significant,” Alexey Kalachev, Chief Executive Officer, Russia Convention Bureau.

The convention and exhibition sector is only starting to grow in Russia

“In various developed countries, the convention sector accounts for 1.5% of GDP. The UK is a leader in this field. The country hosts numerous events of this kind, which is clearly due to its status as a financial centre. Conventions account for 2.9% of its GDP. In our country, this figure is 0.2%. Clearly, we are still at the learning stage, and are a long way away from leading nations and the global average,” Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.

PROBLEMS

Logistics

“We have tried to clarify what barriers exist to bringing people to events in the Far Eastern Federal District. Transport accessibility is a big factor,” Alexey Kalachev, Chief Executive Officer, Russia Convention Bureau.

A low number of major events in the region

“As the Eastern Economic Forum has grown, we can clearly see that this venue [FEFU – ed.] is not large enough to host it. Do a lot of these kinds of events take place in the region? Unfortunately, for the region, they do not,” Alexander Stuglev, Chief Executive Officer, The Roscongress Foundation.

Insufficient infrastructure to hold events

“Exhibitions in the region are currently being curtailed by the fact that there is nowhere to hold them,” Vera Yermilova, General Director, Dalexpocenter LLC.

SOLUTIONS

Building the infrastructure needed to hold events

“A proposal has been made to hold a working meeting together with Roscongress, the Ministry for the Development of the Russian Far East, the Ministry of Construction, and the Government of Primorye Territory on building a digital district. I call this a ‘convention’, because the trigger here is the convention and exhibition centre. <...> We need to endeavour to establish such a centre in this district, covering all areas which exist on Russky Island, and which are outlined in presidential orders and decisions made by state corporations, and in the context of the development of the FEFU,” Mikhail Grudinin, President, Giprogor Project City Planning Institute of Spatial Modelling and Development.

“It is important for Vladivostok to have a multifunctional venue where it will be possible to hold a range of sporting and cultural events under one roof, or at a single place. It is possible to draw from the experience of Russian and international convention centres,” Alexander Stuglev, Chief Executive Officer, The Roscongress Foundation.

“Vladivostok has recently come third very often in matters to do with tourism. For example, Vladivostok is in third place in terms of the growth of foreign tourists flying to Vladivostok; it is third in terms of the number of international flights. <...> If things were made simpler through infrastructure, there could be a significant improvement in the potential to hold conventions and exhibitions. A simplified visa regime will help in this regard,” Konstantin Bogdanenko, Acting Vice Governor of Primorye Territory.

A holistic approach to solving tasks

“In and of itself, a convention centre, no matter how well it is built, will not solve any problems. We need a good operator, one which can ensure that the complex continues to host events,” Konstantin Bogdanenko, Acting Vice Governor of Primorye Territory.

Support for small and medium business

“We always support the development of small, medium, and even large businesses in the MICE industry, because if we speak about Roscongress’ objectives, then they are primarily to do with holding big events. Perhaps they will develop in other regions as well. I am referring to Sochi, St. Petersburg, and Moscow. That is why we won’t deviate from this approach – any small and medium-sized company will be able to bring event more events here. They will create and organize them. In terms of the development of the MICE industry, this can only be a good thing,” Alexander Stuglev, Chief Executive Officer, The Roscongress Foundation.

For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.

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